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Tri Pointe Homes (TPH) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Tri Pointe Homes (TPH) closed at $13.90, marking a -1.49% move from the previous day. This change lagged the S&P 500's daily loss of 0.57%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.03%.

Investors will be hoping for strength from TPH as it approaches its next earnings release. In that report, analysts expect TPH to post earnings of $0.28 per share. This would mark year-over-year growth of 55.56%. Meanwhile, our latest consensus estimate is calling for revenue of $686.19 million, down 1.69% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.19 per share and revenue of $2.83 billion, which would represent changes of -19.05% and -8.12%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TPH. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.93% higher. TPH currently has a Zacks Rank of #3 (Hold).

Investors should also note TPH's current valuation metrics, including its Forward P/E ratio of 11.86. For comparison, its industry has an average Forward P/E of 11.71, which means TPH is trading at a premium to the group.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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